LONDON, April 28 (Reuters) - Britain's markets watchdog said
on Tuesday it might take enforcement action against banks that
are putting pressure on their corporate borrowers during the
pandemic to take other services as well.
The Financial Conduct Authority said it has heard "credible
reports" of a small number of banks failing to treat their
corporate clients fairly when negotiating new or existing debt.
"In particular, we have heard reports that banks may have
used their lending relationship to exert pressure on corporate
clients to secure roles on equity mandates that the issuer would
not otherwise appoint them to," the FCA said in a "Dear CEO"
letter to heads of banks.
"We will be looking into this further, but want any practice
of this nature to cease immediately."
(Reporting by Huw Jones
Editing by Maiya Keidan)